Escrow agent is a trusted 3rd party who can hold assets on behalf of contracting parties
To facilitate certain types of transactions, funds and /or documents need to be held temporarily by a trusted third party. An Escrow Agent is an example of a trusted third party who can hold funds whilst a transaction or project is completed in accordance with the terms of the agreement. Advanced Abstract in an Escrow Agent and can help you with an Escrow arrangement in Allentown PA, Bethlehem PA, Easton PA, Reading PA and Stroudsburg PA.
Escrow agreements can be used for all kinds of transactions or projects. These include real estate transactions, general buy and sell transactions, pay for work agreements and more. For example, if you are a freelancer and you are contracted to perform work for a certain company. The company won’t pay you up front because they want to be sure you will complete the work. On the other hand, you want to be sure you will get paid after completing the work. An Escrow agent can help. The contracting company pays the money into the Escrow account. The Escrow agent releases the funds to you when the work is complete.
Basically, an Escrow Agent is a trusted 3rd party who can hold assets on behalf of a first party for delivery or transfer to a second party pursuant to the second party performing the obligations required in terms of the agreement
The process works as follows:
- The buyer and seller agree on terms
- The buyer submits funds to the Escrow Agent
- The seller delivers the goods or services
- The buyer approved
- The Escrow agent release the funds to the seller
The benefits of using an Escrow agent include:
- The discreet handling of sensitive documents
- The safekeeping of fund
- Enabling transactions between 2 parties who might not know each other well
- Protecting both parties involved